12.1. Classification of costs
In accordance with the fact that the costs of their types and composition are planned and optimized depending on various conditions and factors that affect differently the various costs, it is advisable, before proceeding directly to justify the planned indicators, to classify costs with the subsequent selection of the most appropriate methods (differentiated by cost element) of their planned calculation.
First of all, the costs must be divided into three groups:
- costs that are not subject to change due to strict obligations of the enterprise under contracts or regulated by regulatory legal documents (basically it is conditionally fixed costs, forming the basic conditions of the enterprise's activity);
- costs associated with obligations that may be revised to some extent and will depend on a number of managed and unmanaged factors, affecting the results of the enterprise's performance (mixed costs);
- costs that can be deferred (reduced) without significant damage to the enterprise's competitiveness.
The level of impact and manageability for these costs is different and increases in groups (unmanaged, poorly managed, managed). In this case, the methods for calculating the cost plan for each group can be different (unmanaged calculated on the basis of methods of normative and technical and economic calculations, and managed - based on expert assessments, economic and mathematical modeling, extrapolation, etc.).
For an adequate decision-making on cost planning and choosing the method for their justification, it is advisable to conduct a more detailed classification, because depending on the group, the calculation and optimization have their own specifics. Classification features of the division of costs are many, therefore in this textbook are given only those that need to be taken into account in the planned activity of the enterprise.
The costs are subdivided into direct (basically conditionally variable) and indirect (invoices) or conditionally-constant, depending on how they are attributed to the cost of production (direct or overhead) or how they react to changes in the volume of activity (permanent do not change with an increase in the volume of production and sales of products and services, and the variables vary in almost the same proportion.)
It should be noted that the conditionally fixed costs are planned and optimized by the amount, and the conditional variables are first determined by the level to the volume of revenue (gross revenues) on the basis of extrapolation or mathematical modeling, and then their amount is calculated (in more detail the calculation technique is given in paragraph 12.2).
To ensure the comparability of planned costs with actual statistics in the plans, it is necessary to provide for the division of costs in accordance with the current accounting reporting (form 5 of the accounting statements of the organization as amended on 08.11.2010), as well as the US Tax Code (Article 252- 267). In particular:
1. Expenses for the main types of activities related to the manufacture and sale of products. These costs also include commercial and administrative costs.
The costs associated with the production and sale of products, in turn, are divided:
a) for material costs;
b) labor costs;
c) the amount of accrued depreciation;
d) social insurance costs;
e) expenses for the maintenance, operation, repair and maintenance of fixed assets and other property;
f) The cost of developing natural resources;
g) the cost of compulsory and voluntary property insurance;
h) other expenses (expenses for research and development, etc.).
2. Non-operating expenses, including costs associated with the payment of fines, penalties, writing-off of overdue accounts receivable, and other expenses not related to the main line of business.
In addition, for tax accounting, separate payments for taxes and fees are separately allocated and planned in accordance with the regulations adopted by the taxation system and the accounting policy of the enterprise.
For a detailed study of the rationale and optimization of costs, they should be further disaggregated and the calculation should be carried out taking into account the real need for these costs. Expanded classification of costs by different characteristics is given in Table. 15.
By nature of costs
By Place of Origin
- production (by type of activity)
Relative to the main activity
- costs associated with production and sales
- non-operating expenses, including operating expenses
For cost objects
- Material costs:
o to purchase raw materials for production needs;
o for the purchase of inventory and other supplies that are not depreciable property;
o to purchase fuel, water, energy of all kinds;
o to pay for transportation services;
o loss from shortage within natural decline
- labor costs:
o for tariff rates, salaries;
o incentive payments;
o the cost of public utilities, food, food, uniforms free of charge to employees;
o expenses for vacation pay;
o payments to the Pension Fund, medical and social insurance funds
- expenses related to the maintenance of property:
o Depreciation charges on the value of fixed assets;
o Amortization of intangible assets with a life expectancy in excess of 12 months
o expenses for compulsory and voluntary property insurance;
o expenses for maintenance of fixed assets
- Other costs:
o advertising costs;
o costs for certification;
o costs for ensuring fire safety;
o recruitment costs;
o travel and entertainment expenses;
o auditor, notary, consulting services
The above classification of costs allows you to adequately carry out their justification and calculations both in accordance with the plan and in fact. It should be emphasized that cost planning methods, depending on their type, may vary. So, when planning material costs and costs associated with the maintenance of property, the methods of technical and economic calculations and the normative method are applied mainly. And when justifying the costs of labor, other costs - extrapolation, expert estimates, indicative. This differentiation of planning methods is due to the fact that costs react differently to changes in the volume of activity, reflect the market conditions for their occurrence and inclusion in the cost of production and services.
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